Suppose a Competitive Firm Pays a Wage of $12 an Hour

question 40

Multiple Choice

Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit.Assume that labour is the only input.If hiring another worker would increase output by five units per hour, then to maximize profits the firm should

• A)not change the number of workers it currently hires.
• B)lay off some of its workers.
• C)hire the additional worker.
• D)There is not enough information to answer the question.

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Definitions:

Signs and Meaning

The study of how signs (anything that represents something else) convey meaning, both in language and in other forms of communication.

Narrative Analysis

The study of the formal properties of stories that people tell. It generally attempts to identify such aspects as plot, setting, characters, and order of events.

Stories People Tell

The narratives shared by individuals, often studied in qualitative research to gain insights into beliefs, experiences, and social dynamics.

Aristotle's Concept

Refers to the philosophical ideas and teachings of Aristotle, a Greek philosopher whose work covered many subjects including physics, metaphysics, poetry, theater, music, logic, rhetoric, politics, ethics, biology, and zoology.